- Withdrawal of existing Taxation System completely (except customs i.e. import duties).
- Every Transaction routed through a bank will attract certain deduction in appropriate percentage as Transaction Tax i.e. Single point tax deducted at source. (say 2 %).
- This deduction is to be effected on receiving/credit accounts only.
- This deducted amount will be credited to different Government levels like Central, State and Local (say 0.7%, 0.6%, 0.35% respectively).
- Transacting Bank will also have its share in this amount as the bank has a key role to perform (say 0.35%).
- Withdrawal of High denomination currency (say above Rs. 50).
- Cash transactions will not attract any transaction tax.
- Government should make legal provisions to restrict cash transactions up to a certain limit (say Rs. 2000).